Two days back, RBI took a strict position on digital currencies in its first Bi-month to month Monetary Policy Statement of 2018-19 by ordering all the regulated entities to quit providing their services to the people and businesses alike that deals with digital currencies.
In any case, nothing was clear starting at yet, individuals and businesses alike were looking out for RBI for further elucidation.
Recently, the central bank of India accepted its last approach on the digital currency by issuing a circular titled “Prohibition on dealing in Virtual Currencies” for all commercial and cooperative banks, NBFC and payment framework providers.
The circular specifies the various warnings issued by the central bank to the general population and entities dealing with digital currencies in India and its related risks.
RBI gives a detailed clarification on the exercises identified with virtual monetary forms that would be banned from services by regulated entities with prompt effect:
“In view of the associated risks, it has been decided that, with immediate effect, entities regulated by the Reserve Bank shall not deal in VCs or provide services for facilitating any person or entity in dealing with or settling VCs. Such services include maintaining accounts, registering, trading, settling, clearing, giving loans against virtual tokens, accepting them as collateral, opening accounts of exchanges dealing with them and transfer/receipt of money in accounts relating to purchase/ sale of VCs.”
The central bank additionally reports that the regulated entities that are now giving their services to the crypto-merchants “shall exit the relationship within three months from the date of this circular.” This implies anybody that people and businesses are given three months to settle their crypto accounts.
Before the circular has been issued, numerous crypto exchanges, wallets, and dealers were figuring out alternative routes to deal with the RBI ban on cryptos. Zebpay, a bitcoin and digital currency exchange in India issued a notice to its clients.
However, with this current circular by RBI, things have turned out to be to a great degree clear and it would appear that investors must choose the option to get all funds removed from the crypto market within 3 months.
RBI’s choice to ban the banks and payment services to give their services to people and businesses dealing with crypto has made a hullabaloo in the Indian digital currency community.